Rickys Repair Shop has a monthly target profit of $17,000. Variable costs are 60% of sales, and
Question:
Requirements
1. Compute the monthly margin of safety in dollars if the shop achieves its income goal.
2. Express Ricky’s margin of safety as a percentage of target sales.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 87% (8 reviews)
Requirement 1 If variable costs are 60 of sales then the contribution margin ratio must be 40 of sa...View the full answer
Answered By
Ajeet Singh
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
4+ Reviews
24+ Question Solved
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Question Posted:
Students also viewed these Managerial Accounting questions
-
Rodneys Repair Shop has a monthly target profit of $ 15,000. Variable costs are 75% of sales, and monthly fixed costs are $ 10,000. Requirements 1. Compute the monthly margin of safety in dollars if...
-
Robbie's Repair Shop has a monthly target profit of $31,000. Variable costs are 20% of sales, and monthly fixed costs are $19,000. Requirements 1. Compute the monthly margin of safety in dollars if...
-
Shop has a monthly target operating income of $ 30,000. Variable expenses are 40% of sales, and monthly fixed expenses are $ 7,500. Requirements 1. Compute the monthly margin of safety in dollars if...
-
Required Use the Target Corporations annual report in Appendix B to answer the following questions. a. What was Targets current ratio for its fiscal-year ended February 1, 2014 (2013) and 2012? b....
-
Distinguish among companies and corporations that have been created by special acts of parliament, by royal charter, by registration, by letters patent and by filing articles of incorporation.
-
Review Conceptual Example 14 before attempting this problem. The truck in that example is traveling at 27 m/s. The density of air is 1.29 kg/m 3 . By how much does the pressure inside the cargo area...
-
Once a salesperson sees one or more buying signals from a prospect, he or she should trial close. What happens if the prospect doesnt close at that point? Why is this outcome actually favorable for...
-
Calculating the Number of Periods Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $10,000...
-
Required information [The following information applies to the questions displayed below.] The Sky Blue Corporation has the following adjusted trial balance at December 31. Cash Accounts Receivable...
-
Minesweeper, the well-known computer game, is closely related to the wumpus world. A minesweeper world is a rectangular grid of N squares with M invisible mines scattered among them. Any square may...
-
Mel owns a machine shop. In reviewing the shops utility bills for the past 12 months, he found that the highest bill of $2,600 occurred in August when the machines worked 1,400 machine hours. The...
-
Following is the income statement for Marsden Mufflers for the month of June 2016: MARSDEN MUFFLERS Contribution Margin Income Statement Month Ended June 30, 2016 Sales Revenue (280 units $325)...
-
What is substantial performance?
-
Other information: 1. All accounts have normal balances. 2. $27,900 of the note payable balance is due by October 31, 2024. The final task in the year-end process was to assess the assets for...
-
a. Write a synchronization solution to the below scenario using semaphores only: (3 marks) Process P2 Process P4 Process P3 77 Shared variables Put your semaphores declaration & initialization here...
-
Assume that the following code segment is run on a MIPS processor with hazard detection and forwarding, in order, 5 stages pipeline (F (instruction fetch), D (instruction decode), E (execute), M...
-
shows a complete C codes. Kindly find and explain 10 errors in the following program. If there is no error, leave the box empty. Table 2.0: C Codes C-Programming codes #include #include Error #define...
-
Referring to Table 1.0 below, it shows the criteria of a wind power system to generate electric power in watt. Kindly sketch a flow chart for the wind power system according to the given criteria....
-
Life on Earth began about ________ _______________ years ago. At first, organisms were simple, like present-day ____________________.
-
An annual report of The Campbell Soup Company reported on its income statement $2.4 million as equity in earnings of affiliates. Journalize the entry that Campbell would have made to record this...
-
Ausley Acoustics recorded the following transactions during October 2014. a. Received $ 1,500 cash from customer for three months of service beginning October 1, 2014, and ending December 31, 2014....
-
The following data at July 31, 2014, are given for EBM. a. Depreciation, $ 500. b. Prepaid rent expires, $ 600. c. Interest expense accrued $ 300. d. Employee salaries owed for Monday through...
-
The worksheet of Jobs4U Employment Service follows but is incomplete. Requirements 1. Calculate and enter the adjustment amounts directly in the Adjustments columns. Use letters a through d to label...
-
Factors which might cause a reduction in management's assigned penalty are called: a. Last chances. b. Second chances. c. Mitigating circumstances. d. Discharge circumstances.
-
In a high-profile criminal trial, the defendant alleges that their confession was coerced by law enforcement officers during interrogation. How might the court assess the admissibility of the...
-
A multinational corporation is accused of environmental pollution and human rights violations in a foreign country where it operates. What legal challenges arise in holding the corporation...
Study smarter with the SolutionInn App